In today’s briefing:
- Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI
- Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked
- Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- Baidu Inc.: A Game-Changing Strategy That’s Shaping AI’s Future! – Major Drivers
- ARM Holdings: Initiation Of Coverage & Post IPO Analysis – A Tech Giant’s New Era or a Risky Bet? – Key Drivers
- Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers
- CrowdStrike Holdings Inc.: Bringing AI-Native Cybersecurity To SMBs! – Major Drivers
- AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers
Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Long Nvidia vs. Short Basket of Taiwan AI Concept Stocks — The trade has held steady since our last piece with Nvidia outperforming the shorts slightly.
- CES 2024 will be held January 9th to 12th. It will showcase AI expanding into a wide range of Edge AI applications such as home appliances and PCs.
- One can maintain the L/S trade into CES 2024 given that the Taiwan AI Short Basket constituents are unlikely to be beneficiaries of positive news flow from the event.
Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI
- Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
- Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- AI PC Reality Check: PC Upgrade Cycle Ahead, But Worth a 50% 1M Acer Rally? Long Dell Vs. Short Acer
Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked
- TSMC: 9.2% Premium — Spread Fell But Remains Historically High; Short Interest Spiked for ADRs
- UMC: Trading at -1.2% Discount — Still Uncompelling, Wait for Lower Levels
- ASE: Drops to 7% Premium — Could Soon Be at a Level to Go Long
Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
- Marvell Technology managed to surpass Wall Street’s revenue and earnings expectations, achieving a commendable revenue of $1.42 billion, marking a 6% sequential growth above the midpoint of the provided guidance.
- The data center end market witnessed revenue of $556 million in the third quarter, surpassing expectations, mainly driven by robust AI revenue.
- Despite the anticipated decline in enterprise on-premise revenue, Marvell’s diverse product portfolio, including PAM4 optical products and Teralynx Ethernet switches, contributed to the broad-based growth.
Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
- Recent results from Micron and SK Hynix did not only signal a recovery for DRAM but also for NAND flash memory. Micron expects improving NAND pricing through CY2025E.
- Latest data shows a surge in NAND pricing — 512GB NAND pricing is now up 116% from its 2023 lows.
- Silicon Motion shares are down 5% over the last year. They have been weighed down by their terminated acquisition by MaxLinear, but now could offer a laggard play.
Baidu Inc.: A Game-Changing Strategy That’s Shaping AI’s Future! – Major Drivers
- Baidu managed to exceed analyst expectations in terms of revenue as well as earnings in the most recent quarter sustaining solid revenue, profit, and cash flow.
- The strategic reinvention of the product portfolio with ERNIE and ERNIE bot played a pivotal role in achieving these results.
- Baidu successfully launched EB4 ahead of expectations, attributing it to a unique end-to-end 4-layer AI infrastructure and valuable user feedback.
ARM Holdings: Initiation Of Coverage & Post IPO Analysis – A Tech Giant’s New Era or a Risky Bet? – Key Drivers
- ARM Holdings, post its recent IPO, presents an investment case characterized by robust growth in licensing and cautious optimism in royalties.
- The company reported strong licensing revenue, surpassing expectations, which is indicative of its aggressive push in emerging markets like AI and compute subsystems.
- We believe that ARM Holdings offers a compelling mix of strong licensing revenue growth and a recovering royalty segment, albeit with challenges in operating expenses and margin pressures.
Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers
- Alteryx, Inc. delivered a solid result and managed an all-around beat in the last quarter, demonstrating commendable performance across various fronts.
- These achievements were propelled by improved sales execution and heightened customer commitment to the Alteryx platform.
- Alteryx’s Executive License Agreement (ELA) strategy, featuring simplified pricing and bundled features, resonated well with larger organizations.
CrowdStrike Holdings Inc.: Bringing AI-Native Cybersecurity To SMBs! – Major Drivers
- CrowdStrike Holdings delivered an all-around beat in the most recent quarterly result.
- The company’s commitment to innovation was underlined by strategic acquisitions, such as Bionic, expanding the Falcon Cloud Security suite.
- CrowdStrike’s diverse product portfolio, including cloud security, identity threat protection, and LogScale’s next-gen SIEM, contributed to their impressive Q3 performance.
AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers
- AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter revenue growth.
- As part of the portfolio optimization program, the apps sector marked its first quarter of quarter-over-quarter revenue growth, generating a total revenue of $864 million, surpassing guidance with an adjusted EBITDA of $490 million, up 63% year-over-year.
- In the app segment, revenue grew 5% sequentially to $360 million, representing the initial quarter of growth since the portfolio optimization initiative began.
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